As usual, by far the best economic interpretation on this M&A came out in http://www.breakingviews.com (click: topics/bidsbuyouts) – look for it! Being basically a contestable market (Baumol), or at least one with low entry barriers and sunk costs, shake out will continue in this industry – even after the inevitable concentration wave, just following now.

WSJ

Delta and Northwest’s boards approved a merger that would create the world’s largest airline by traffic if the deal wins over regulators and employees. The combined carrier would keep Delta’s name and Atlanta headquarters. (Press release)4:16 a.m.

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